NASDAQ$CENTA

Central Garden & Pet Company · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported record operating income and earnings per share while expanding gross margin, growing market share and significantly improving cash position.

Central Garden & Pet announced record operating income and earnings per share for Q3 2023. Net sales increased by 1% to $1,023 million. The company is raising its outlook for the full year.

  • Net sales increased 1% to $1,023 million.
  • EPS of $1.56; Non-GAAP EPS of $1.75.
  • Operating income increased 8% to $123 million.
  • Raises outlook for fiscal 2023 Non-GAAP EPS to $2.55 or better.

Headline financials

Total Revenue

$1.02B

Previous: $1.02B+0.8%
EPS (adj)

$1.40

Previous: $1.11+26.1%
Gross Margin

31.1%

Previous: 30.3%+2.6%
Non-GAAP Gross Margin

31.9%

No prior period
Operating Margin

12.0%

Previous: 11.2%+7.1%
Non-GAAP Operating Margin

13.4%

No prior period
Capital Expenditures

-$40.9M

Previous: -$98.6M+58.6%
Free Cash Flow

$42.3M

Previous: -$23.1M+282.8%
Net Income

$83.1M

Previous: $75.4M+10.2%
Operating Income

$123M

Previous: $114M+7.7%
Gross Profit

$318M

Previous: $308M+3.4%
Cash & Equivalents

$333M

Previous: $196M+70.2%
Total Assets

$3.42B

Previous: $3.35B+2.2%
Stock-Based Comp

$7.31M

Previous: $7.4M-1.3%

Revenue & EPS history

Central Garden & Pet · Revenue · Quarterly

$1.02B

Q3 2023+0.8%vs Q3 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Central Garden & Pet · $1.02B total across 2 segments · Q3 2023

  • Garden Segment
    $520M
  • Pet Segment
    $503M

Forward guidance

The Company now expects fiscal 2023 non-GAAP EPS of $2.55 or better.

Headwinds

  • Macroeconomic uncertainty
  • Cost inflation
  • Evolving consumer behavior
  • Unfavorable retailer inventory dynamics
  • Excludes the impact of any acquisitions, divestitures or restructuring activities that may occur during fiscal 2023, including any projects under the cost and simplicity program.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-0.4%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+0.4%

Avg return

30 days after

53%

34 / 64 earnings

Positive

+18.5%

Q1 2016

Best reaction

-22.9%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+3.2%+2.2%+4.9%
Q1 2026+0.0%-1.4%-0.9%
Q4 2025+8.2%+8.2%+3.3%
Q2 2025+0.3%+6.3%+4.4%
Q1 2025-0.9%+0.8%+0.1%
Q4 2024-0.2%+2.9%-1.4%
Q3 2024+5.0%+0.5%+0.7%
Q2 2024+11.9%+11.8%+0.3%
Q1 2024+5.6%+14.6%+6.9%
Q4 2023-10.8%-10.2%+6.6%
Q3 2023+15.6%+12.8%+8.0%
Q2 2023+6.3%+4.0%+2.0%
Q1 2023+4.0%+7.4%+0.0%
Q4 2022-8.8%-9.0%-13.4%
Q3 2022+0.7%+3.2%-11.3%
Q2 2022+0.7%+3.7%+2.7%
Q1 2022+0.3%-6.3%-1.1%
Q4 2021-3.6%-5.4%-2.8%
Q3 2021-3.0%-1.9%-8.0%
Q2 2021+5.8%+5.5%-1.0%
Q1 2021+5.2%+6.3%+11.8%
Q4 2020+1.7%+0.2%-6.1%
Q3 2020+7.1%+6.3%-0.1%
Q2 2020+2.3%+8.4%+10.7%
Q1 2020-1.8%-3.8%-10.8%
Q4 2019-18.4%-16.5%+0.1%
Q3 2019-22.9%-24.1%-12.7%
Q2 2019+4.4%+5.4%+2.6%
Q1 2019-21.0%-22.2%-24.5%
Q4 2018+2.6%+10.0%+4.8%
Q3 2018-0.4%+0.7%-9.4%
Q2 2018+5.4%+9.8%+13.5%
Q1 2018+8.6%+5.4%+7.7%
Q4 2017+3.5%+5.3%+4.1%
Q3 2017+11.7%+11.0%+12.4%
Q2 2017+3.3%+0.2%-6.7%
Q1 2017-4.3%-7.1%+0.6%
Q4 2016+9.0%+12.3%+12.9%
Q3 2016+7.1%+7.7%+6.0%
Q2 2016-2.8%
Q1 2016+18.5%
Q4 2015+14.9%
Q3 2015+3.1%
Q2 2015-4.3%
Q1 2015+3.5%
Q4 2014+4.1%
Q3 2014-0.4%
Q2 2014-7.4%
Q1 2014+7.5%
Q4 2013-11.5%
Q3 2013-13.5%
Q2 2013-12.0%
Q1 2013-2.8%
Q4 2012-13.1%
Q3 2011-4.2%
Q4 2011-4.2%
Q3 2012-6.1%
Q2 2012-7.4%
Q1 2011+1.4%
Q1 2012+4.7%
Q2 2011-3.6%
Q4 2009-3.6%
Q3 2010-14.7%
Q4 2010-14.7%

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